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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Looking to move some money into the bond section of my portfolio. On the more risky side looking at XHY and USHY. How would you rate these for safety going forward on the the capital gain/loss side. Also I may sell some stocks like Magna that don't appear to be doing much.

I've been listening to Howard Marks and he thinks now is the time to be leaning towards bonds and Warren Buffet has been raising cash.
Read Answer Asked by Mark on November 06, 2024
Q: I’d like to get your thoughts on the new Global X Treasury Ladder ETFs (SLDR, MLDR, and LLDR). My understanding is that their returns are likely to closely follow the current yield, with minimal potential for capital gains or losses. Does this make them a good fit for the secure portion of a conservative portfolio, or are there additional factors to consider?
Read Answer Asked by Patrick on November 05, 2024
Q: Hello Peter & Company,

Can you please suggest a US Exchange based fund equivalent to PSU.U.

Thanks for all you do

gm
Read Answer Asked by Gord on November 05, 2024
Q: Dear 5i team.

The common theory of interest rates decling was long bonds would benifit most. This does not appear to be the case currently, and I've seen some not so clear responses thus far in the Q+A. Please explain in further detial, why long bonds have not performed to this expectation thus far, and what you see as a catalyst for long bonds to perform as expected with possible future declining interest rates..

Many thanks for your help.
Read Answer Asked by Arthur on November 04, 2024
Q: Short term cash US cash investment.
Hello 51 team,

I have a portfolio at Nat Bank, using NBC101 to park cash; however, it is a bit inconvenient as it required at least 2 days between selling and buying the mutual funds and another day until it posts in our account while ETF is the same processing rule as equities.
I appreciate having your thoughts on using ETF instead==> ICSH vs JPST
What are the difference between the 2 and which one will be your pick?
I noted that ICSH (lower fee .08%, smaller size) vs JPST (higher fee, much larger size). Thank you!
Read Answer Asked by Nhung on October 29, 2024
Q: If you have $500,000 to invest in GIC's - would you recommend 5 different institutions holding $100,000 of GIC's to be sure of CDIC coverage? Seems like a lot of work to me.
Read Answer Asked by Lucy on October 25, 2024
Q: Recently I have found the TBIL and ZMMK ETFs to be a safe place to keep my cash and earn a half decent return.
However, the upcoming US elections, the upheaval in the Middle East, Ukraine, and the ongoing threat to global oil prices, is increasing the possibility of a sudden spike in interest rates, and a complete reversal of the current narrative of lower rates.
How would TBIL and ZMMK be affectted by such a turn of events (i.e. a spike in interest rates) and more generally, what investment asset classes would you recommend that would best mitigate such risks.
Thank You
John
Read Answer Asked by John on October 24, 2024
Q: Hello 5i,

Could you recommend 3 ETFS that you would consider for a 70 years old retiree. My portfolio is currently 95% in Equities both in Dividend ETFS (VDY, ZEB, XEI and XDIV and individual shares (ENB, RY, TELUS, and BMO.)

Thank You,
Read Answer Asked by Yves on October 23, 2024
Q: Would you consider Guardian Ult-Shrt US TB USD ETF (US $ denom) to be one of the safest ways to hold USD? Last monthly interest payment was 5% annualized which is quite favourable … seems others may not offer higher rates.

Initially the plan was at sub 4.5% level to put this cash elsewhere but with declining US Bond prices I am now wondering how quickly rates may move lower and am wondering if we may experience a diverging interest rate environment between Cda n US rates. What’s the likelihood we could see such divergence n is there a point where the effect of a weakening Canadian dlr would limit further divergence (we are weak at 72.5 exch now but recall a lo of 68 many years ago).

Read Answer Asked by Craig on October 23, 2024
Q: I’m considering whether I should invest in TLT, HPYT, or a combination of both. I understand that HPYT has a much higher yield, but I’m struggling to fully understand why. TLT, which makes up around 70% of HPYT’s holdings, only has a yield of about 4.3%, which makes me wonder how HPYT can achieve such a significantly higher yield. I understand the basics of covered call ETFs, but what kind of options are they trading to generate this yield? There seems to be something I’m missing here—could you also explain the additional risks that come with HPYT's elevated yield?
Read Answer Asked by Patrick on October 22, 2024
Q: In your answer to "A" today regarding a GIC, I was surprised to find 5i telling subscribers that banks use the funds from GICs to fund the mortgages and loans that they originate.
Mike
Read Answer Asked by michael on October 21, 2024
Q: Lots of good Q&A lately on parking short term cash.

I have $100K to invest. Are one of these more suitable than the others for quickly withdrawing an amount as required when I want to purchase stocks or equity ETF's?

Would you feel comfortable putting the whole amount in any one of these, or is it best to diversify a bit?

Do you have a recommended USD version(s) for my USD account ?
Read Answer Asked by James on October 18, 2024
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